1. Multinational companies
An introduction:

2. Multinational Companies
Definition:
A company which operates in several countries. It will own factories, sites and business in more than one country.

3. Multinational Companies
Examples of multinational companies:

4. Multinational Companies
These tend to operate in the main developed trading areas of the world.
These are:
North America
The European Union
South – East Asia

5. Multinational Companies
Multinational companies are split into:
Parent Company
This is the part of the company which owns the rest and does tend to be where the headquarters of the company is based.

6. Multinational Companies
Multinational companies are split into:
Subsidiary Company
A company owned by the parent company but that has its own limited liability. Much of the production and sales is done in the Subsidiary Company.

7. Benefits
Can spread manufacturing around the world to be close to the market
Economies of scale gained by doing things in bulk
Can produce goods in places where costs are lower

8. Drawbacks
Communication problems caused by being located in different countries
High cost of transporting goods
Different legal requirements in different countries
Fluctuating exchange rates for different currencies